The Nevada Gaming Control Board gave the greenlight Wednesday morning to a newly formed entity to take over the day-to-day casino operations of the off-Strip casino property.
Virgin Hotels Las Vegas’ top two executives were granted full control of casino operations amid an intensifying labor dispute with striking workers, and, with contract negotiations at an apparent impasse, union members took advantage of Wednesday’s public meeting to urge Nevada gaming regulators to scrutinize ownership’s ability to meet employee demands.
The Nevada Gaming Control Board gave the greenlight Wednesday morning to a newly formed entity — C&C 4455 — to take over the day-to-day casino operations of the off-Strip casino property. C&C 4455 is comprised of Cliff Atkinson and Chad Konrad, the property’s president and chief financial officer, respectively. Atkinson will assume the role of chief executive officer while Konrad will continue as CFO, a position he has held at the property since it was known as the Hard Rock Hotel.
The Nevada Gaming Commission must approve the changes before they become final.
The two veteran gaming executives told the NGCB that with Mohegan Gaming’s departure as the casino operator, friction points separating Virgin’s hotel, gaming and resort operations would be removed, thereby creating a more streamlined guest experience. The goal, they said, is stability.
“Since reopening (as Virgin Hotels Las Vegas in 2021), the property has struggled. I think that’s pretty public and well known,” Atkinson said Wednesday morning in Las Vegas. “The deal with Mohegan simply did not work….The reason we are here (seeking approval of C&C 4455) is to successfully turn the gaming operations around.”
Atkinson outlined a long-term plan for Virgin’s success that includes an appeal to locals, the activation of “dead spaces” on the property by bringing in new entertainment and amenities for guests, and the creation of a new customer loyalty program. He said there was an opportunity to return value to the Las Vegas casino market.
“We both have a similar belief in the property, in the casino specifically and in our ability to really drive this casino from a performance standpoint forward and to keep this thing running, keep the doors open on this thing,” Konrad told the three-member gaming board.
Culinary, Virgin unable to come to terms
Prior to testimony from Atkinson and Konrad, members of Culinary Union Local 226 implored the board to question the gaming executives about the property owner’s financial situation, which they believe is being misrepresented as a means to avoid negotiating in good faith. Culinary 226 has engaged in an open-ended strike that began on Nov. 15, making it the longest labor demonstration in recent memory.
Ted Pappageorge, the union’s treasurer and secretary, told the board that Virgin employees have been working under contract conditions that expired 18 months ago. The union is reportedly seeking a new contract comparable to those offered at other off-Strip casinos, such as Westgate, Sahara, Rio and The Strat.
Despite multiple negotiations, the two sides have been unable to come to terms.
“Unfortunately, we have a company that is unwilling to settle the standards that we have negotiated in Las Vegas. They are the final remaining company that has not come to the table with a fair contract,” Papageorge said.
The union believes that Virgin’s ownership is more than capable of meeting contract demands. The property’s ownership group includes a multi-billion-dollar Canadian-based pension fund, a private equity firm called Juniper Capital Management and British billionaire Sir Richard Branson’s Virgin Group.
Union member and Virgin employee Paul Catha said Nevada has a “complicated relationship” with billionaire institutions and individuals, and questioned why no one from the ownership group was present Wednesday to speak about the newly formed casino operation entity.
“Why would Nevada not require the owners of Virgin Las Vegas to be included in a review of the resort’s own licensed casino operation application?” Catha asked. “We believe Nevada gaming regulators should ask broader and deeper questions about sources of funds and ultimate control at Virgin Las Vegas.”
NGCB Chair Kirk Hendrick indirectly addressed those concerns during the testimony of Atkinson and Konrad, alluding to an investigative document that was “a couple of inches thick,” suggesting that regulators had conducted due diligence on both the executives and the ownership group.
For now, the union’s strike will continue.
“These companies have extremely deep pockets,” Papageorge said of Virgin’s ownership group. “So the idea that these Canadian economic entities would come to Las Vegas to try to destroy our standards of living that we’ve worked for decades to build is just unacceptable…and if they don’t agree to Vegas standards, (they should) go back to Canada.”
The casino dismissed the union’s talking points.
“The Culinary Workers Union Local 226 continues to bargain in bad faith – repeatedly refusing to engage in meaningful negotiations with us since January 2024 – and nothing has changed. Despite Virgin Hotels Las Vegas agreeing to many of the Culinary Union leadership’s demands and showing flexibility on critical sticking points, the Culinary Union has not seriously countered any of our economic proposals, nor even brought our latest offer to their members for a formal vote,” the casino said in a statement, later adding that union “leadership’s current demand is not financially sustainable for Virgin Hotels Las Vegas, and we will not agree to the same contract that led to layoffs at other properties. Virgin Hotels Las Vegas remains focused on reaching a reasonable agreement that secures a brighter future for all of our 1,710 team members and their families.”
David Danzis can be contacted at [email protected] or (702) 383-0378. Follow AC2Vegas_Danzis on X.
